US stocks have had a wild ride to this point in 2016, selling off to begin the year but rebounding sharply in mid-February, leaving us within shouting distance of our starting point, writes Brad Sorensen, director at Charles Schwab.
Federal Reserve uncertainty, global recession concerns, and a weak corporate profit picture contributed to the volatility, and those issues seem likely to continue. We are suggesting investors maintain a neutral exposure to US equities and use the volatility to rebalance portfolios as needed. Economic growth was weak in the first quarter, but that has been the tendency over the past several years, with history showing that growth has bounced in the second quarters, and we believe that will happen again. Markets in the red after Fed hints at June rate hike Unemployment remains low a...
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